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Asked 10/20/2008

My employer wishes to close his 401K plan. Is this legal?

My employer is tired of paying administrative fees and wishes to close his 401K plan. Is this legal? Can he then direct deposit using our payroll system (to a rollover IRA)? Or will I have to contribute directly myself ? Does this mean that there will be withholding taxes deducted on the amount I wish to contribute? Will I have to wait until I file my taxes next year to get that withholding back?

 
 
 
 
 
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